Breakeven ROAS Calculator

Free Tool · jetfuel.agency

Breakeven ROAS Calculator for DTC Brands

The minimum ROAS that makes you money — after COGS, shipping, fees, returns, and repeat purchase. Not the inflated number Meta reports.

Your breakeven ROAS

True BEROAS (first order)
—x
Enter your numbers to calculate.
LTV-adjusted BEROAS
—x
Factors repeat purchase.
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Enter your ad performance to see diagnosis.
Your MER
—
total rev / paid spend
Breakeven MER
—
floor to avoid loss
Target MER
—
for target margin

Profit breakdown per order

Where every dollar of revenue goes on a single order.

Net revenue per order—
Total variable cost—
Contribution margin—
Contribution margin %—
Suggested target ROAS
for 30% contribution margin after ad spend
—x
Industry benchmark comparison
No benchmark data loaded yet. Data fills in as sources are ingested into the Jetfuel Market Research pipeline. See market-research/README.md.
Show me the math
Enter inputs above to see the full calculation.
Calculations are directional and use your inputs. Run your real account numbers through this, then have us pressure-test them.

Breakeven ROAS — questions operators actually ask

Pulled from real Reddit, r/ecommerce, r/FacebookAds, and operator conversations.

What is breakeven ROAS?
The minimum return on ad spend at which ad-driven revenue covers ad spend plus every variable cost attached to producing and delivering the order — COGS, shipping, fulfillment, payment processing, platform fees, and expected returns. Below that number, every new order loses money.
How do I calculate true breakeven ROAS?
Subtract all variable costs from net revenue to get contribution margin. Breakeven ROAS equals net revenue divided by contribution margin. At $60 AOV with 30% COGS, $6.50 ship, $3 fulfillment, 2.9%+$0.30 processor, 2% platform fee, and 10% returns, your contribution margin lands around $25 — so your breakeven ROAS is about 2.4x.
Why is my 3x ROAS unprofitable?
Meta and Google report gross ROAS against revenue only. Your real breakeven has to cover COGS, shipping, fulfillment, payment fees, and returns. For a typical apparel brand with 25% returns and 35% COGS, breakeven often lands closer to 3.5-4x. A 3x ROAS in that cost profile loses money on every first-order sale.
How does repeat purchase rate affect breakeven ROAS?
A repeat customer generates a second order with no ad spend attached. If 40% of first-time buyers place a second order at the same AOV, you effectively acquire 1.4 orders per ad-acquired customer. That divides your first-order breakeven ROAS by 1.4 — a 3.4x first-order breakeven drops to 2.4x once you factor LTV.
How do I factor shipping and fees into breakeven ROAS?
Every dollar of shipping, fulfillment, and payment processing is a dollar you can’t use to cover ad spend. Add merchant-paid shipping, 3PL pick-and-pack, the 2.9% + $0.30 processor fee, and the Shopify transaction fee (0-2% depending on plan) to your cost stack before computing contribution margin. Most calculators ignore these and spit out a number that’s 20-40% too low.
What’s breakeven ROAS for a dropshipper?
Dropshipping COGS typically runs 50-65% of AOV, which crushes contribution margin. At $40 AOV with 60% COGS, 8% returns, and typical fees, breakeven ROAS often lands above 5x. That’s why most dropship stores can’t scale on paid ads alone without a repeat-purchase flywheel.
What’s a good ROAS for my store?
There is no universal good ROAS — it depends on your contribution margin. A jewelry brand at 75% gross margin can run 1.8x profitably. An electronics brand at 45% margin needs 2.5x+ just to breakeven. Run the calculator with your real numbers. “Industry average” is noise.
Should I optimize for ROAS or MER?
Platform-reported ROAS is inflated by attribution overlap and last-click bias. Blended MER (total revenue / total ad spend across channels) is closer to truth. Use ROAS for campaign-level decisions and MER for portfolio profitability. Your breakeven number here is the floor for MER, not just for Meta.
How do I set my target ROAS above breakeven?
Target ROAS is breakeven plus the margin you want to keep. If breakeven is 2.4x and you want a 30% net margin after ad spend, target 3.4x. The calculator outputs that number once you set a target contribution margin in the advanced section.
My ROAS looks fine but my bank account doesn’t — why?
Two common reasons. First, platform-attributed ROAS double-counts organic + direct revenue that would have happened anyway, so your real ad contribution is lower. Second, your breakeven was never where you thought it was — shipping, returns, and fees shave 15-25% off margin most operators forget to model. Fix both and the gap disappears.

Run your numbers against ours.

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